The impacts of customer participation and innovation capabilities on new product performance
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Abstract
This study investigates how distinct forms of customer participation, i.e.: functional, emotional, and knowledge-based, affect incremental and breakthrough innovation capabilities, and ultimately new product performance. Grounded in the customer-driven innovation model and dynamic capabilities theory, the research adopts a quantitative approach using survey data from Malaysian firms engaged in new product development. The results reveal that functional and emotional customer participation significantly enhance both types of innovation capabilities, whereas knowledge-based participation shows no direct influence. Moreover, neither incremental nor breakthrough innovation capabilities exhibit a direct effect on product performance, highlighting the critical role of effective commercialization strategies in transforming innovation into tangible results. These findings advance theoretical understanding by unpacking the differentiated effects of customer engagement on innovation outcomes and offer actionable insights for firms seeking to optimize customer co-creation and innovation pathways.
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